The Role of Equity Investors in the Internationalization Strategies of Infant Technology-based Firms

Zucchella, Antonella; Ramusino, Enrico Cotta

doi:10.1057/9780230285743_6

Cited by 3 publications

(3 citation statements)

References 39 publications

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“…Moreover, firms with board members who were also active in other boards exported more, had more foreign markets and were more active outside Europe. This could be explained by the fact that experienced managers have more network relationships and a better access to resources (Pergelova et al, 2018;Westhead et al, 2001), and in addition, they can apply their prior knowledge in other contexts (Zucchella and Cotta Ramusino, 2008). On the other hand, longer tenure was also associated with a slightly lower export share and a lower share of non-European markets.…”

Section: Resultsmentioning

confidence: 98%

“…As according to some authors, involving equity investors can sometimes considerably affect firms' internationalization and local activities (Chen et al, 2014;Compagno et al, 2005;Majocchi et al, 2016;Zucchella and Cotta Ramusino, 2008), this aspect needs attention in the future. In addition, CEO duality (whether the CEO is also a chairperson of the board) could be studied more actively in the future, as it can affect larger firms' internationalization (Kyereboah-Coleman and Biekpe, 2006;Sanders and Carpenter, 1998;Strange et al, 2009).…”

Section: Implications For Future Researchmentioning

confidence: 99%

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Export behavior and corporate governance

Lukason

Vissak

2020

RIBS

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Purpose This paper aims to study how firms’ export behavior is associated with their corporate governance. Design/methodology/approach This study uses whole population data of Estonian small and medium-sized enterprises: 9,530 exporters and 73,619 non-exporters. Several theory-driven corporate governance variables and exporting variables (based on previous studies) are used. Binary logistic regression is applied to study how exporters’ corporate governance differs from that of non-exporters. Eight additional continuous dependent variables are used to portray exporters’ internationalization with ordinary least squares regression. The robustness of the obtained base results is checked for younger/older and smaller/larger firms. Findings Having female board members did not lead to a higher likelihood of export activities. Experience – tenure’s length, board members’ age and other board memberships – provided mixed results. Having a larger board was associated with a higher export propensity and larger exports but a lower export share. A larger share of a chief executive officer’s shareholding was associated with lower export propensity, exporting less overall and activities on a smaller number of markets. The presence of a majority owner was associated with larger export share and export turnover, but more focus on the main export market. Firm age and size affected the results. Originality/value Previous studies about the interconnection of corporate governance and exporting have relied on varied theoretical explanations and limited sets of variables. This paper provides an extensive insight by using corporate governance variables emergent from various theoretical explanations accompanied by a large set of dependent exporting variables. The latter enables obtaining a more holistic view of the interconnection between the two phenomena.

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Section: Resultsmentioning

confidence: 98%

Section: Implications For Future Researchmentioning

confidence: 99%

Export behavior and corporate governance

Lukason

Vissak

2020

RIBS

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“…Thus, without managers' prior experience, firms would try less actively to enter distant markets as those tend to be culturally more different from their home market [31]. In addition to bringing their prior knowledge into the young firm [32], [33], these key decision-makers "decide when, where and how to enter foreign markets" [34, p. 60]. Thus, it is important to find out to what extent their previous experience helps young firms to internationalize early and rapidly.…”

Section: Introductionmentioning

confidence: 99%

How Does Managerial Experience Predict the Internationalization Type of a Young Firm?

2021

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This study aims to find out how useful managers' past general and export experience is in predicting whether young manufacturing firms become fast internationalizers. Extant literature about the role of managerial experience in determining young firms' internationalization type is scant. This paper fills this gap by providing systematic evidence on which kinds of general and export experience can be used for accurate predictions of two firm types: born globals and general fast internationalizers. Our dataset encompasses information about managerial experience of the whole population of young Estonian manufacturing firms. Based on using four different prediction methods (logistic regression, rough sets, decision tree, neural networks) and a large variety of variables reflecting managers' past experience, the results indicate that in prediction models, export experience variables are more valuable than general experience variables. Born globals can be predicted with an accuracy of at least 90% in case of all applied machine learning methods, while the precision is lower in case of general fast internationalizers. The study leads to important implications for international business theory and practice.

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